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Torstar Corp. announced Friday it is selling Harlequin, one of the world’s leading publishers of books for women, to News Corp for $455 million in cash.

Harlequin will become a division of HarperCollins, which is a subsidiary of News Corp.

“Harlequin has been an important part of Torstar over the past 39 years and we are very proud of the global success it has achieved,” said David Holland, President and Chief Executive Officer of Torstar Corp. in a news release.

Torstar acquired control of Harlequin in 1975 and full ownership in 1981.

“While making the decision to sell has been difficult, we are confident that this transaction represents excellent value for Torstar shareholders and it also further strengthens the financial position of Torstar,” Holland said.

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Holland said in an interview that HarperCollins had approached Torstar about the sale.

“We concluded it was a good opportunity to exit the Harlequin business at an excellent price,” he said.

“Our intention is to take the necessary time to assess the options that are available to us, including investment opportunities,” he said. “The company will take shape over time, but we don’t have any immediate plans that would require use of the funds.”

Some of the sale proceeds will be used to pay down debt, he said.

“We are excited to be joining HarperCollins Publishers,” Craig Swinwood, publisher and chief executive of Harlequin, said in the news release. “This transaction will allow Harlequin to continue to operate as a distinct and successful brand within a larger publishing company.”

Brian Murray, president and chief executive of HarperCollins, said Harlequin’s international reach is valuable, and “will give HarperCollins an immediate foothold in 11 new countries from which we can expand into dozens of foreign languages for authors who choose to work with us globally.”

The transaction will need clearance under competition law, including in Canada and the U.S. It will also require approval under the Investment Canada Act.

It must also be approved by Torstar’s Class A shareholders. The voting trustees of the Torstar Voting Trust, which controls approximately 98 per cent of the Class A voting shares of Torstar, have agreed to vote in favour of the transaction.

The parties said they expect to close the transaction by the end of September.

In 2013, Harlequin had segment revenues of $398 million, accounting for 29 per cent of Torstar’s consolidated revenue. It accounted for 32 per cent of Torstar’s consolidated earnings before interest, taxes, depreciation and amortization in 2013.

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